Petters Resignation Puts Finances, Jobs In Jeopardy
Used to relying on short-term loans from its parent company to
carry it through slower times, Sun Country Airlines is bracing for
the possibility of layoffs or possible closure due to last week's
resignation of Petters Group Worldwide CEO Tom Petters.
Federal Investigators have charged Petters with mail fraud and
money laundering, in an alleged multi-billion dollar scheme
benefiting PGW. Sun Country Airlines, which Petters bought with
other investors in 2006, has not been implicated in the
investigation, according to the St. Paul Pioneer Press.
Sun Country CEO Stan Gladek explained Petters usually helped out
during slower months with a short-term loan, sufficient to see the
airline through until after the first of the year, when business
typically picks up. But with Petters gone, so is the possibility of
a loan.
"There are obviously risks that no solution will be found (to
the company's financial troubles)," Sun Country said in a notice to
its approximately 850 employees on Wednesday. "This is to notify
you that should Sun Country not be able to obtain additional
financing or obtain relief from our major creditors in the near
future there is a distinct possibility that the airline will be
shut down and/or you will be furloughed."
Although the notice warns employees this course of action may be
taken as soon as December 1, Wendy Williams Blackshaw, a Sun
Country spokeswoman, Thursday said "over the past week, we have
made progress in negotiating with vendors and identifying
additional sources of revenue."
"While Sun Country has no plans to shut down or institute a
major layoff, we wanted to be sure we are in compliance with
federal law," Williams Blackshaw said. Sun Country emphasized it
was sending its notice to employees because the Worker's Adjustment
and Retraining Act requires 60 days advance notice to employees of
mass layoffs, the Pioneer Press reported.
Assuring Sun Country ticket holders of their protection,
Williams Blackshaw explained the airline does not receive funds
until the passengers actually fly. Credit card companies retain and
"would refund those funds if for some reason any flights were
canceled," she said.
Proud of their fleet comprised of environmentally-friendly
Boeing 737-800 airliners, Sun Country "offers a great experience
from in-flight entertainment to comfy leather seats." Based in the
Twin-Cities, Sun Country offers service to 29 destinations in the
US, Mexico, and the Caribbean.